A £50m Covid-19 recovery fund is to be handed to universities and colleges in Wales to help save jobs and support students - but the body representing colleges says it won't be enough.
It follows the £29m extra cash announced for schools earlier this month to support for learners at crucial stages and affected most by closures.
The emergency package for universities and colleges will be distributed by the Higher Education Funding Council Wales.
It will support universities to maintain jobs in teaching, research and student services and support students suffering from financial hardship, among other things.
The money will also help learners starting A-level or vocational courses at an FE college or sixth form, to boost teaching support after their time away.
The economic and practical impact of the pandemic on applications, courses, research and finance has hit universities and colleges hard. At least one of the eight universities in Wales is looking at job cuts - Cardiff.
One of the biggest knocks for universities is the potential fall in international students who pay higher fees. they also face loss of income from accommodation after halls had to shut to the pandemic and can't operate to full capacity next term thanks to social distancing.
Announcing the extra funding to help them, Education Minister Kirsty Williams, said: “We will not have a full picture of the pandemic’s impact on universities until next term, but this funding will provide a vital support to our institutions in their preparations for the autumn.”
ColegauWales, which represents Wales' 12 colleges as well as community-based adult learning, warned: "Although welcomed, the funding announced is unlikely to mitigate all of the challenges facing the sector as a result of Covid19.
"Colleges are having to plan to deliver balanced budgets and the ongoing impact of the pandemic remains a real challenge.
" Our FE colleges have been hugely affected by the challenges brought about by Covid-19, not only for learners and staff but more widely within their communities."
Work, apprenticeships and exams at higher and further education institutions were thrown into chaos by lockdown when they were forced to shut. But while some universities have posted deficits no colleges are currently in deficit, said ColegauCymru.
Universities in Wales were already grappling with falling incomes, rising costs and expanding debts even before lockdown.
Earlier this month the Institute of Fiscal Studies warned 13 unnamed UK universities face "a very real prospect" of insolvency following the coronavirus crisis unless they receive a government bailout.
High-ranking universities with large numbers of international students face the largest immediate drop in income, but the least prestigious universities are at greatest risk, warned the IFS.
It suggested a targeted government bailout to help them.
Although the full impact of Covid-19 on universities won’t be clear until next term it is feared that international students will stay away and first year students defer to avoid disruption to learning and social life. Traditional Fresher’s Week festivities won’t take place and large lectures have also been cancelled.
FE colleges have warned they have not had the same support and guidance as schools in terms of re-opening full-time next term.
Colleges began re-opening just before schools last month and universities have begun to announce opening plans for next term, including face-to-face teaching and opening halls of residence.
£27m will be provided to higher education institutions, with £23m to support students in FE colleges and sixth forms.
Announcing the multi million pound package on Wednesday, July 22, Ms Williams said: “Our universities and colleges here in Wales are world class, both for their research and for student life. The most recent student survey, published last week, showed yet again that Welsh universities poll ahead of the UK for student satisfaction.
“Our colleges and universities are stewards of place. Each one across the nation, and working together, will be important in our recovery as they work with schools, business, international partners and public services.
“So we are supporting these major institutions in Welsh life, so that they can support students of all ages, and keep playing their part in our recovery.
“We will not have a full picture of the pandemic’s impact on universities until next term, but this funding will provide a vital support to our institutions in their preparations for the autumn.
“Our support for 16 to 19 age students aims to ensure students beginning courses in September are not disadvantaged by the disruption they faced earlier this year, and is part of our wider measures to ensure we have a skilled workforce that will drive forward the economic recovery from the coronavirus.
“We will consider the situation and needs again in the autumn, to continue our support for the economic and social recovery from Covid-19.”
Minister for Finance and Trefnydd, Rebecca Evans, said: “Our universities and colleges are major employers within their communities, and provide the skills and knowledge which are vital for economic growth.
“This support is part of the Welsh Government’s action to support students and enable Wales’ major education institutions to deliver employability and skills, which will be so important in the reconstruction phase.
“This package of measures will enable institutions to support young people to complete and continue learning that may have been disrupted by Covid-19, and support those who may have otherwise sought employment to stay in education to further improve their employability and skills.”
Watch as Education Minister Kirsty Williams announces plans for schools to reopen on September 1
The Westminster government should follow the lead of the Welsh government and provide emergency support to universities to help them weather the Covid-19 crisis, said the University and College Union (UCU).
Commenting on the support package for Welsh universities and colleges, UCU general secretary Jo Grady said: "This announcement is a welcome recognition of the problems that both further and higher education face. It is important that both colleges and universities use this funding to protect jobs and expand opportunities for students.
"Universities and colleges across the UK need urgent support from the Westminster government so they can continue to function and are in a position to lead our recovery from the current crisis."
The NUS Wales President Becky Ricketts said she was disappointed the package doesn't include ring-fenced money for students facing financial hardship as a result of the pandemic.
